Reliance Cotton Spinning Mills Announces Merger with Amer Cotton Mills

Karachi: In a significant corporate move, Reliance Cotton Spinning Mills Limited (RCSML) has announced its plan to merge with Amer Cotton Mills (Pvt.) Limited (ACML). The decision was disclosed following a board meeting on August 28, 2024, in accordance with the legal requirements under the Securities Act, 2015, and the Companies Act, 2017.

The merger, as outlined by RCSML, is designed under the Scheme of Compromises, Arrangement and Reconstruction, involving the dissolution of ACML. The merger will be executed without the need for winding up Amer Cotton Mills, as per the approval of the Honorable High Court of Sindh at Karachi. Post-merger, shares of Reliance Cotton will be allocated to the shareholders of Amer Cotton based on a SWAP ratio determined by M/s. Shinewing Hameed Chaudhri and Co, Chartered Accountants.

According to information available from the Pakistan Stock Exchange (PSX), this strategic move is conditioned upon securing approvals from shareholders, creditors, and necessary regulatory endorsements. Furthermore, the merger is contingent on the sanction by the Honorable High Court of Sindh at Karachi, alongside the completion of various corporate, regulatory, and legal formalities.

This development is part of a broader strategy to enhance the operational capabilities and market reach of RCSML, positioning it for stronger performance in the competitive textile industry of Pakistan.

The Pakistan Stock Exchange has been notified to inform its members about these proceedings, ensuring compliance with Clause 5.6.1 of the Rule Book of Pakistan Stock Exchange Limited and relevant sections of the Securities Act.

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